SBF’s Prosecutor Quits – What It Means for Crypto Crime

She is best known for prosecuting FTX founder Sam Bankman-Fried, notably grilling him in a four-hour cross-examination in October 2023, where she used his public statements and private messages to expose inconsistencies in his testimony.

Bankman-Fried was found guilty of fraud, conspiracy, and money laundering and was sentenced to 25 years in prison in March 2024. His crypto exchange, FTX, collapsed in November 2022 during a bear market, when it failed to maintain liquidity, leading to a massive loss of confidence among users and investors.

Sassoon played a key role in his conviction, and her resignation comes after a reported dispute with the U.S. Department of Justice (DOJ). 

Why Did Danielle Sassoon Resign?  

On January 21, 2025, Danielle Sassoon was appointed as the acting U.S. Attorney for the Southern District of New York. Among the federal cases under her supervision was a corruption case against New York City Mayor Eric Adams.

After about three weeks in office, Sassoon submitted a resignation letter in protest of a DOJ directive to drop the case against Adams. In an 8-page letter, she stated that she received a memorandum from Acting Deputy Attorney General Emil Bove instructing her to dismiss charges against the NYC mayor.

Believing that the government lacked a valid legal basis to seek dismissal, she chose to resign rather than comply. Sassoon explained that her decision was driven by her commitment to the rule of law and her duty to serve faithfully.

In response, the DOJ accepted Sassoon’s resignation but presented counterarguments to her claims.

The investigation into Mayor Eric Adams's alleged corruption began in September 2023. He is accused of abusing his position and accepting illegal benefits from foreign nationals, including alleged donations from the Turkish government.

However, according to Acting Deputy Attorney General Emil Bove, Adams became the target of an accelerated investigation after he publicly criticized former U.S. President Joe Biden.

This has led to heated debates. While some media outlets and users call Sassoon a hero, others claim her resignation was politically motivated.

According to Politico, two other DOJ officials also resigned following the order to drop the Adams case.

What Does Danielle Sassoon’s Resignation Mean for Crypto? 

Sassoon’s resignation may make it easier for the DOJ to drop the charges against Adams. Following her departure, the DOJ appointed Matthew Podolsky as the Acting U.S. Attorney for the Southern District of New York.

His approach to the case remains unclear.

Mayor Eric Adams is well known for his pro-crypto stance. Since taking office in January 2022, he has been a vocal advocate for blockchain adoption and digital assets, even receiving his first three paychecks in Bitcoin. Previously, he announced plans to position New York as a global crypto hub.

With Adams in office and potentially facing less legal pressure, he might push harder for blockchain initiatives, crypto-friendly regulations, and partnerships in the city.

At the same time, some users on X (formerly Twitter) speculate that Sassoon’s resignation signals a shift toward a less aggressive approach to prosecuting crypto-related fraud.

FTX Historian (@historian_ftx) wrote on X suggesting that her departure could benefit Sam Bankman-Fried’s appeal.

Both Sam Bankman-Fried and Mayor Eric Adams share the same lawyer, Alex Spiro, which has sparked speculation that Spiro could attempt to negotiate a deal with the DOJ for Bankman-Fried.

However, since Bankman-Fried has already been convicted and his case is unrelated to Adams’ legal troubles, such a deal is highly unlikely.